The long-awaited notification of the takeover of Australia's largest Internet service provider, OzEmail Ltd., by international telecommunications carrier MCI WorldCom finally came to pass last night.
OzEmail reported to the Australian Stock Exchange that the sale of 107,424 ordinary shares at US$2.20 per share to UUNet Holdings Australia has been approved.
Officials from OzEmail also announced yesterday that MCI WorldCom's subsidiary, UUNet Australia, has successfully achieved shareholder approval for the A$520 million (US$329 million) takeover.
The deal was originally meant to close 5 p.m. Feb. 9, but was extended until Feb. 24 because MCI WorldCom failed to attract the required amount of shareholders.
The deal had already been accepted by OzEmail Directors Sean Howard, Malcolm Turnbull and Trevor Kennedy, who together owned 54% of the company, and the Foreign Investment Review Board (FIRB) and Australian Securities and Investment Commission (ASIC) approved the merger in January.
However, under corporations law, UUNet Australia was still required to gain 75% acceptance in order to compulsorily acquire all outstanding shares.
In the deal, OzEmail will reportedly become the Internet arm of UUNet Australia and will allow MCI WorldCom to strengthen its local presence and come head to head with telco giant Telstra .